Valued at a market cap of $32.2 billion, Brown & Brown, Inc. (BRO) is an insurance brokerage and risk management company headquartered in Daytona Beach, Florida. It provides insurance solutions to commercial, public, and individual clients across various industries, including healthcare, automotive, and public entities. 

This insurance company has outpaced the broader market over the past 52 weeks. Shares of BRO have soared 25.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.9%. Moreover, on a YTD basis, the stock is up 10.2%, compared to SPX’s 1% return. 

Zooming in further, BRO’s outperformance looks pronounced when compared to the SPDR S&P Insurance ETF’s (KIE) 16.2% rise over the past 52 weeks and 5.3% uptick on a YTD basis. 

Shares of Brown & Brown plunged 6% on the following day after its Q1 earnings release on Apr. 28. The company posted revenue of $1.4 billion, which grew 11.6% from the year-ago quarter and met the consensus estimates. A solid 12% rise in its commissions and fees supported the top-line growth. Moreover, compared to the previous-year quarter, its organic revenue improved 6.5% and its adjusted EBITDAC margin expanded by 110 basis points. However, its adjusted EPS advanced 13.2% from the same quarter last year to $1.29 but marginally fell short of the Wall Street estimates, which might have led to the negative market reaction.

For the current fiscal year, ending in December, analysts expect BRO’s EPS to grow 8.6% year over year to $4.17. The company’s earnings surprise history is mixed. It topped the consensus estimates in three of the last four quarters, while missing on another occasion. 

Among the 17 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on five “Strong Buy,” two “Moderate Buy,” nine “Hold,” and one “Moderate Sell” rating. 

This configuration is slightly less bullish than a month ago, with six analysts suggesting a “Strong Buy” rating. 

On May 13, The Goldman Sachs Group, Inc. (GS) downgraded BRO’s rating to “Neutral” and lowered its price target to $119, which indicates a 5.8% potential upside from the current levels. 

The mean price target of $119.78 represents a 6.5% premium from BRO’s current price levels, while the Street-high price target of $130 suggests an upside potential of 15.6%.